This
is a glossary of terms that are, for the most part, unique
to the world of financial investigations, or terms that have
a different meaning than that which is commonly understood
when they are used in this context.

Waiting Period:
The Securities and Exchange Commission (SEC) requires a twenty
day time period between a corporation's filing of its security
offering registration and when its security may be legally
sold to investors. If additional time is required to make
corrections or append information to the registration statement
and prospectus, the waiting period--also called "cooling
off period"--may be prolonged.

Wallflower:
A security that is no longer preferred by investors. Wallflower
securities are apt to have low price/earnings ratios.

Wall Street:
1) Term used when referring to the investment community as
a whole--also referred to as "the Street". 2) Popular
name for New York City's financial district, where the New
York and American Stock Exchanges and a multitude of brokerage
firms are headquartered.

Warrant: A certificate
that gives a shareholder the right to purchase a security
at a specified price within a predetermined time period or
perpetually. Corporations issue warrants directly and is sometimes
offered along with a security as incentive to buy. The abbreviation
"WT" is used in newspaper stock listings.

Wash Sale: 1)
A security that is bought or sold, either concurrently or
within a short period of time, to create artificial market
activity to profit from a rise in the security's price. 2)
The sale of a security and then the repurchase of shares within
30 days. The Internal Revenue Service (IRS) automatically
disallows any losses for tax purposes. The IRS also extends
the wash sale prohibition to closing short sales.

Wasting Asset:
1) Securities with a value that expires at a specified time
in the future. The time values of the securities deteriorate
as their termination date approaches. Examples of wasting
assets are option contracts, warrants and rights. 2) Fixed
assets that have a limited life. Thus, they are subject to
depreciation. 3) Natural resources that diminish in value
as the assets are depleted and therefore are subject to amortization.
Examples are oil and gas extractions.

Watch List:
List of securities under surveillance by either a brokerage
firm, exchange or other self-regulatory organization. A security
may be on a watch list for various business or regulatory
reasons.

Watered Stock:
Stock representing ownership of overvalued assets whose total
worth is less than their invested capital. The condition of
overcapitalized corporations may result from inflated accounting
values, operating losses or excessive dividends. Some negative
characteristics of watered stock are the inability to recoup
full investment in liquidation, insufficient return on investment,
low market value and the firm's reduced ability to capitalize
on growth opportunities. The customary method of correcting
the situation is for a corporation to either increase its
assets without increasing its outstanding shares or reduce
outstanding shares without reducing assets. Other methods
do exist.

WD: Conditional
transactions on the secondary distribution of shares issued
and outstanding. An example is a wholly owned subsidiary.
The abbreviation "WD" is used in newspaper stock
listings.
Weak Market: Market typified by larger number of sellers then
buyers along with a prevailing trend of declining prices.

Wedge: Technical
chart pattern where two converging lines connect a series
of peaks and troughs to form a wedge. These converging lines
move in the same direction. Rising wedges normally occur when
there are interruptions of a falling price trend. Falling
wedges normally occur when there are interruptions of price
rallies.

Western Account:
A corporate underwriting agreement that syndicate members
jointly sign with the issuer. However, each member's individual
liability is limited to the specific number of shares or bonds
that they individually underwrite--also called a "divided
account."

W Formation:
Technical chart pattern of a security's price that shows the
price has hit a support level two times and is moving up--also
called a "double bottom" formation. A double top
is a reverse W-- the price has hit a resistance level and
is headed downward.

When Distributed (WD):
Conditional transactions on the secondary distribution of
shares issued and outstanding. An example is a wholly owned
subsidiary. The abbreviation "WD" is used in newspaper
stock listings.

When Issued (WI): The
abridged form of "When, as, and if issued" is a
conditional transaction in a security authorized for issuance
but has not been issued yet. The abbreviation "WI"
is used in newspaper stock listings.

Whipsawed: In
volatile price swings, the act of making losing trades as
prices rise and fall. Traders are whipsawed if they buy just
before prices fall and sell just before prices rise. Technicians
also use this term to refer to misleading indicators in chart
trends of a security or a market.

White Knight:
A friendly acquirer who is sought by the target corporation
of an unfriendly takeover.

Whole Life Insurance:
Form of life insurance policy that protects the insured's
beneficiary(s) in case the insured passes away. Unless the
policy lapses or is canceled, it will remain in effect for
the insured's lifetime. The policyholder pays a set yearly
premium that does not increase as the person ages. The cash
value portion of the policy accumulates tax-deferred, and
may be borrowed against in a device called a policy loan.
If the loan is not repaid, the death benefit is decreased
by the loan amount. Whole life insurance is also known as
"permanent" life or "straight" life insurance.

Wholesaler:
1) Broker-dealer that trades with other broker-dealers instead
of retail investors. 2) An investment banker who performs
as an underwriter in a new issue or as a distributor in a
security's secondary offering. 3) A mutual fund sponsor.

WI (When Issued):
The abridged form of "When, as, and if issued" is
a conditional transaction in a security authorized for issuance
but has not been issued yet. The abbreviation "WI"
is used in newspaper stock listings.

Wide Opening:
At the trading session's opening, an unusually large spread
exists between a security's bid and asked prices.

Widow-And-Orphan Stock:
A very safe stock that pays high dividends. The company usually
has a noncyclical business and frequently has a low beta coefficient.

Wire House: National
or international brokerage firms whose branch offices are
linked by communication networks. The term dates back to when
only the largest firms had high speed communications. The
networks rapidly disperse information and research about securities
and markets. Through increased technology, regional brokers
and small retail firms now have the same ability. However,
the designation as a wire house is used only to refer to the
largest brokerage firms.

Withdrawal Plan:
Open-end mutual fund program in which shareholders can receive
fixed payments of income and/or capital gains on a monthly
or quarterly basis.

Withheld Orders:
A sales violation that occurs when a broker fails to promptly
enter a client's mutual fund order.

Withholding: Action
by a broker-dealer whereby an allotment of securities in a
public offering is retained for its own purposes. If the offering
is a hot issue, this action may be a violation of the Rules
of Fair Practice of the National Association of Securities
Dealers (NASD).

Withholding Tax (W/Tax):
The Internal Revenue Service (IRS) requires financial
institutions to report all client's social security numbers,
interest and dividend payments and sale proceeds. This practice
applies to all US citizens and resident aliens. Those clients
who have not furnished a W-9 or W-8 form to the institution
are subject to withholding tax--also known as "backup
withholding".

With Warrants (WW):
A security that trades with warrants as apart of the issue.
The abbreviation "WW" is used in newspaper stock
listings.

Working Capital: A
financial calculation that is equal to a corporation's current
assets minus its current liabilities. Working capital finances
a business's cash conversion cycle--period needed to convert
raw materials into finished goods, finished goods into sales,
and accounts receivable into cash. Sources of working capital
include retained earnings, short-term loans and trade credit.

Working Control:
Effective control of a corporation exerted through ownership,
whether individually or by a group acting in concert, of less
than 51% voting interest.

Workout Market:
A price range where a broker-dealer feels that a buy or sell
may be transacted. For example, a client wishes to sell a
block of stock and asks the broker-dealer to estimate the
sale price. The broker-dealer's reply would be, "It is
30 to 32, workout." The estimation is that the block
can be sold somewhere between $30 and $32 per share.

World Bank: Formed
to be the bank lender and technical advisor to the developing
countries, utilizing funds and technical resources from the
member nations.

Write-Off: The
act of charging an asset amount to expense or loss to reduce
or eliminate the value of the asset, which reduces profits.
Write-offs are taken in accordance with allowable tax depreciation
of a fixed asset, and with the amortization of certain other
assets.

Writer: Sellers
of option contracts who obligate themselves to the performance
agreed upon in the contract: to sell (if a call was written)
or to buy (if a put was written) the underlying security at
the predetermined price by a specific date if the option is
exercised. In return for the sellers' obligation, they collect
a premium.

Writing Naked:
Strategy used by Option sellers (writers) in which they do
not own the underlying security. This strategy can lead to
profits if the stock moves in the anticipated direction. However,
large losses can be incurred if the stock moves in the opposite
direction. The writer will have to go into the open market
to purchase the stock to effect delivery to the option buyer.

Writing Puts To Acquire
Stock: An option writer, who believes a stock's price
is going to decline, will write a put option exercisable at
the price in which the purchase of the stock represents a
good investment. If the stock goes down and the option is
exercised, the writer has bought the stock at the price that
was decided represents a good investment. In addition, the
writer has the premium income. If the stock goes up, the option
will not be exercised and the writer is ahead by the premium
amount received.

WT (Warrant):
A certificate that gives a shareholder the right to purchase
a security at a specified price within a predetermined time
period or perpetually. Warrants are issued by corporations
directly and are sometimes offered along with a security as
incentive to buy. The abbreviation "WT" is used
in newspaper stock listings.

W/Tax (Withholding Tax):
The Internal Revenue Service (IRS) requires financial institutions
to report all client's social security numbers, interest and
dividend payments and sale proceeds. This practice applies
to all US citizens and resident aliens. Those clients who
have not furnished a W-9 or W-8 form to the institution are
subject to withholding tax--also known as "backup withholding".

WW (With Warrants): A
security that trades with warrants as a part of the issue.
The abbreviation "WW" is used in newspaper stock
listings.